September 7, 2021 – LPGas Magazine
‘Convergence of market factors’ in play for this winter
By: Brian Richesson
The issue is even more worrisome in the Midwest, where propane inventory in August was about 4 million barrels below the five-year minimum, noted Rusty Braziel of RBN Energy. Stocks were increasing but not as fast as usual. He questioned whether it would be enough to satisfy demand this winter.
“This is the propane business,” he said. “The answer to that question is it always depends on the weather. It also depends on propane production” and, in the case of the Midwest, how much production stays in PADD 2 versus getting shipped to the Gulf Coast for exports.
Exports, meanwhile, were running at about 1.3 million barrels per day – more than doubling over the past five years – as overseas markets, most notably in Asia, demand propane for dehydrogenation plants and steam crackers.
Read the full article here: https://www.lpgasmagazine.com/convergence-of-market-factors-in-play-for-this-winter/
